PUBLIC WORKS DEPARTMENT
CITY HALL
10300 TORRE AVENUE • CUPERTINO, CA 95014-5732
TELEPHONE: (408) 777-3354
CUPERTINO.GOV
CITY COUNCIL STAFF REPORT
Date: May 5, 2026
Subject
Award a construction contract for the 2026 Pavement Maintenance Phase 1 Project to O’Grady Paving, Inc. in the amount of $1,869,804; authorization of contract execution and change orders up to $2,150,274.
Recommended Action
1. Award a construction contract for the 2026 Pavement Maintenance Phase 1 Project number 2026-101 in the amount of $1,869,804 to O’Grady Paving, Inc.
2. Authorize the City Manager to execute the construction contract with O’Grady Paving, Inc. when all conditions have been met.
3. Authorize the Director of Public Works to execute any necessary construction change orders up to a construction contingency amount of $280,470 (15%) for a total contract amount not to exceed $2,150,274.
Background
The City of Cupertino performs annual maintenance on its road assets including preventative maintenance and rehabilitation. The 2026 Pavement Maintenance Phase 1 will rehabilitate twelve street segments by milling the existing road surface and placing a new layer of asphalt.
The project also includes removal and replacement of non-compliant ADA ramps located on streets to be rehabilitated and performing asphalt dig-out repairs at various locations in preparation for preventative maintenance treatments to occur this Fall as part of the 2026 Pavement Maintenance Phase 2 Project.
Reasons for Recommendation
On March 6, the City publicly advertised the Project. The bid documents issued by the City are available at https://apps.cupertino.org/details/836. Project streets were selected based upon Pavement Condition Index (PCI) and maintenance history. See Attachment B for the Project street list. A location map is provided as Attachment C.
On April 7, the following 10 bids were received:
Bidder Bid Amount
Engineers Estimate $2,478,000
O’Grady Paving, Inc. $1,869,804
Rapid Grading Services $1,922,218
Radius Earthwork, Inc. $1,951,096
G. Bortolotto & Company, Inc. $1,977,444
Zara Construction, Inc. $2,128,753
Interstate Grading and Paving, Inc. $2,142,179
Precision Grade, Inc. $2,361,798
MCK Services, Inc. $2,429,223
QLM, Inc. $2,760,757
The Department of Public Works reviewed the bids for completeness, responsiveness and compliance with bids specifications. The apparent low bid received from O’Grady Paving, Inc was deemed to be the lowest responsive and responsible bid per the Instructions to Bidders and Cupertino Municipal Code Section 3.23.
The Contractor, O’Grady Paving, Inc., has experience and qualifications to complete the project.
O’Grady Paving Inc, has successfully completed projects of similar size and scope. Based on the contractor’s experience and performance with other agencies, staff recommends awarding the contract (Attachment A) to O’Grady Paving, Inc., for the contract amount of $1,869,804, include a 15% construction contingency in the amount of $280,470 for a total contract amount not to exceed $2,150,274. Construction contingency allows for unforeseen conditions and is a typical contracting best practice.
Sustainability Impact
Maintaining and preserving the local streets and roadway system will reduce drive time and traffic congestion, improve bicycle safety, and create a safer and more appealing pedestrian experience. This leads to reduced vehicle emissions, helping the City achieve air quality and greenhouse gas emission reduction goals.
Fiscal Impact
Award of this contract will result in a fiscal impact of up to $2,150,274, including the base contract and potential contingency. Sufficient funds are budgeted in 270-85-821 900-921 (Capital Outlay Annual Outlay Project) including approximately $438,330 in Vehicle Registration Fee revenue distributed to the City by the Santa Clara County Valley Transportation Authority (VTA). The balance of the contract will be funded by Measure B revenue also distributed by VTA.
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Project Funding Status Amount
Capital Outlay Annual Asphalt Project (GL# 270-85-821
900-921) includes $438,330 of vehicle registration fee revenues received from VTA
$6,631,379
Capital Outlay SB1 Roads (GL# 270-85-821 900-971) $2,143,527 Funding Available for 2026 Pavement Maintenance
Program
$8,774,906
Funding Impact Amount
2026 Pavement Maintenance Program Phase 1 –
Contractor (GL# 270-85-821 900-921) (this item) -$2,150,274 2026 Pavement Maintenance Program Phase 2 –
Contractor (pending award, separate agenda item
5/5/2026) (GL# 270-85-821 900-971)
-$2,143,527
2026 Pavement Maintenance Program Phase 2 –
Contractor 4/21/2026, (pending award, separate agenda
item 5/5/2026) (GL# 270-85-821 900-921)
-$715,632
Construction Management – Ghirardelli Associates,
Service Order #1 (pending award, separate item 5/5/2026) (GL# 270-85-821 900-921)
-$588,538
Total - Funding Impact -$5,597,971
Project Funding Remaining 3,176,935
City Work Program (CWP) Item/Description
None
Council Goal
Quality of Life, Transportation
California Environmental Quality Act
This project is exempt from CEQA Guidelines 15301(c) (repair and maintenance of existing highways and streets, sidewalks, gutters, bicycle and pedestrian trails, and similar facilities). _____________________________________
Prepared by: Jo Anne Johnson, Public Works Project Manager Reviewed by: Chad Mosley, Director of Public Works
Floy Andrews, Interim City Attorney
Approved for Submission by: Tina Kapoor, City Manager
Attachments:
A – Draft Contract
B – Project Street List
C – Project Location Map